“What’s it Worth” The sole purpose of a business valuation is to determine the “Fair Market Value” of a business or other interest at a specific point in time. The valuation engagement involves arriving at an “OPINION”, in the form of a report regarding the estimated value of an ownership interest.
The valuation analyst is also a Certified Public Accountant; therefore he/she is bound by the AICPA’S CODE OF PROFESSIONAL CONDUCT as well as AICPA’S Statement of Standards for Valuation Services.
Objectivity is a state of mind. The principle of objectivity imposes an obligation to the CPA/Valuation Analyst to be impartial, intellectually honest , disinterested and free from conflicts of Interest.
Many times, the Valuation Engagement leads to Litigation Support Services, providing professional assistance to the attorney’s litigation process. Depending on the client’s needs, the valuator may prepare anything from an oral discussion of reasonable ranges of value to a comprehensive, fully documented written report that would be defensible in court.
Valuation of closely held businesses for: